LG (003550.KS) Q1 2026: Equity Earnings Halve, Profit Slumps 35%

Record net asset value masks a sharp earnings retreat as LG Electronics and LG Chem drag equity-method income to a multi-quarter low.

Source: Q1 2026 Quarterly Report — Filed March 31, 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions

LG Corp., the holding company at the apex of the LG conglomerate, reported consolidated operating profit of ₩413.8 billion in Q1 2026, a 35.1% year-on-year decline driven almost entirely by a collapse in equity-method earnings. The consolidated top line — which incorporates both subsidiary revenues and equity-method income in a single line item — fell 7.0% to ₩1,800.6 billion as equity-method income contracted 47.8%, from ₩481.8 billion to ₩251.5 billion, reflecting simultaneous headwinds at LG Electronics, LG Chem, and LG Energy Solution. Against this earnings retreat, however, the market's estimate of LG Corp.'s net asset value reached an all-time high of approximately ₩37.46 trillion, per sell-side consensus, and the NAV discount to market capitalization tightened from approximately 45% at end-2025 to around 40%, with LG CNS's February 2025 IPO and LG Electronics' share price appreciation as the primary re-rating catalysts. The resulting tension — deteriorating earnings flow versus expanding asset stock — defines the investment narrative for LG Corp. this quarter.

Note: This report covers LG Corp. (the holding company, ticker 003550) exclusively. LG Electronics, LG Chem, LG Uplus, LG CNS, and other operating subsidiaries are separately listed or unlisted entities. This analysis addresses LG Corp.'s consolidated and standalone financials and the value of its equity stakes — not the underlying subsidiaries' own operating performance.